German steelmakers supported the government’s new climate protection program

The industry association insists on the right approach to implementing the announced leading markets

German steelmakers have endorsed the new Climate Action Program (Klimaschutzprogramm 2026, KSP) adopted by the German government, though they emphasize the importance of properly implementing the proposed measures. This is stated in a press release from the German Steel Industry Association (WV Stahl).

As Kerstin Maria Rippel, CEO of WV Stahl, noted, the KSP 2026 is particularly welcome for announcing leading markets for climate-friendly materials, such as steel, in the areas of public procurement and the automotive sector, since without reliable demand, scaling up the production of low-carbon steel will be difficult. However, it remains unclear why the program lacks initiatives in the rail transport sector.

“The crucial question now is how the announced lead markets will be structured in statutory regulations – such as the Public Procurement Acceleration Act. If they are not linked to a «Made in EU» criterion, we will be financing decarbonization in other regions of the world while industrial value creation is lost in Germany and the EU,” she emphasized.

Kerstin Maria Rippel added that steelmakers need leading markets for “Made in Europe” low-carbon steel. Climate protection and competitiveness are interdependent, and only if both of these aspects are considered together will the transition to climate neutrality be successful, and the country will have a chance to remain a powerful industrial center and become climate neutral.”

On March 25, following lengthy discussions, the German government approved a new climate protection program to ensure the country meets its climate goals. Over the next four years (2023–2027), an additional €7.6 billion will be allocated for these goals from the Climate and Transformation Fund, as well as an additional €400 million from a special fund, of which €2.9 billion will go toward financing programs in the industrial sector to support investments in the decarbonization of process heat and the electrification of industrial processes, as well as the promotion of the circular economy. The program also provides for the creation of leading markets for climate-friendly basic materials, particularly steel and cement.

Germany has committed to reducing greenhouse gas emissions by 65% compared to 1990 levels – by 2030, and by 88% – by 2040.

As a reminder, the country’s steel mills increased steel production by 4.8% y/y in February 2026, reaching 2.83 million tons. Compared to the previous month, the figure decreased by 8.1%.